Govt expects successful sales of PGN, BRI
Govt expects successful sales of PGN, BRI
The Jakarta Post, Jakarta
The government hopes to raise about Rp 3 trillion (US$361.44
million) from the sale of two state-owned companies later this
year.
The two companies are gas distribution firm Perusahaan Gas
Negara (PGN) and Bank Rakyat Indonesia (BRI), Minister of Finance
Boediono said on Thursday.
"We are hoping that the sales will be successful and will meet
our target of Rp 6.2 trillion this year," Boediono said during a
hearing with the House of Representatives' budget commission.
The hearing follows a meeting on Wednesday that saw Boediono
propose 2003 budget revisions, including the downward revision of
the privatization revenue target, from Rp 8 trillion to Rp 6.2
trillion.
Boediono said the government had no choice but scale down the
target following its failure to unload three state companies that
had been scheduled for sale this year.
The three are pharmaceutical companies PT Kimia Farma and PT
Indofarma, and airport operator PT Angkasa Pura II.
"It seems that the three companies are not yet ready to be
sold, and we still need to clear up some things up first," the
minister said, adding that the three would likely be included in
next year's privatization program.
A day earlier, the government said disappointing privatization
proceeds had contributed to less-than-expected full-year revenue.
The shortfall also is the result of lower tax revenues, which
had been targeted at Rp 241.7 trillion but is likely to reach
only Rp 235.9 trillion.
That, coupled with rising expenditures, is expected to widen
the state budget deficit to about 2 percent of the country's
gross domestic product (GDP), or Rp 35.1 trillion, higher than
the target of Rp 34.4 trillion.
As a result, the government is now looking to increase its
revenues from other sources to help plug the deficit. Not only is
the government planning to increase its issuance of state bonds
this year, from Rp 7.7 trillion to Rp 11.7 trillion, it also is
preparing to convert Rp 4.8 trillion worth of bonds from the
Indonesian Bank Restructuring Agency (IBRA) into cash, raising
the revenue collected from the agency to Rp 22.5 trillion.
IBRA had earlier been expected to contribute about Rp 18
trillion in cash and Rp 8 trillion in bonds to the state coffers.
Boediono said that as of August, proceeds from privatization
had reached Rp 2.54 trillion, all coming from the sale of part of
the government's stake in Bank Mandiri.
The government recently sold a 20 percent stake in the bank in
the country's most successful initial public offering in history.